Amarnath Securities Ltd. (AMARNATHSEC) - Auditors Report

Company auditors report

To the Members of Amarnath Securities Limited Report on the Financial Statements

We have audited the accompanying financial statements of Amamath Securities Limitedwhich comprise the Balance Sheet as at March 31 2015 and the Statement of Profit andCash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Managements Responsibility for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013(the Act) with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2015;

(b) in the case of the Profit and Loss Account of the profit for the year ended onthat date;

(c) in the case of the Cash Flow Statement of the cash flows for the year ended as onthat date.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

e) On the basis of written representations received from the directors as on March 312015 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

a. the Company did not have any pending litigations;

b. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

c. There were no amounts which were required to be transferred to Investor Educationand Protection Fund by the Company.

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) According to the information and explanations given to us the fixed assets havebeen physically verified by the management during the year.

ii) The Company does not hold inventory at the end of the year. Therefore the saidclause is not applicable to the Company.

iii) We are informed that during the year the Company has not granted any loanssecured or unsecured to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act 2013.

iv) In our opinion and according to the information and explanation given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of fixed assets and for the sale of goods andservices. In our opinion and according to the information and explanation given to us theis no continuing failure to correct major weakness in such internal control systems

v) According to the information and explanation given to us the Company has notaccepted deposits from the public within the meaning of Sections 73 or 76 of the CompaniesAct 2013.

vi) The Central Government of India has not prescribed maintenance of cost recordsunder subsection (1) of Section 148 of the Companies Act 2013 for any of the product ofthe company.

vii) According to the information and explanations given to us and the records of theCompany examined us by us in our opinion the Company is generally regular in depositingundisputed statutory dues in the respect of provident fund employees stateinsurance and service tax and is regular in depositing undisputed statutory dues inrespect of investor education and protection fund sales tax income tax wealth taxcustoms duty excise duty and other material statutory dues as applicable with theappropriate authorities. There are no disputed statutory liabilities payable.

viii) The Company has no accumulated losses at the end of the financial year and it hasnot incurred any cash losses in the financial year ended on the date or in the immediatelypreceding financial year.

ix) According to the information and explanation given to us the Company has notdefaulted in repayment of dues to banks and financial institutions.

x) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not given any guarantee for loans taken byothers from banks or financial institutions.

xi) To the best of our knowledge and belief and according to the information andexplanations given to us term loans availed by the company during the year have been usedfor the purpose for which they are obtained.

xii) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.